Reward and Performance as a Key Element of Motivation

The crisis and the dramatic unemployment have had an inevitable impact in salary policy and development of organizations. Therefore, considering that every organization is interested for their employees to be more motivated to work, thus, this was for this reason and relying on literature, papers and research to know to what extend the reward influences motivation of the employees. Initially, we shall also understand the notion salary and performance and how important are they in carrying out the work in one organization, and how they have evaluated by the management of the same organization. Afterwards, we shall show the way and the best methods on how to pay employees, how the manager must decide on the level of salaries of the employees, and must decide that salaries are not the same for each employee based on their performance, etc. The time has shown that the performance evaluation provides information that serves the basis for all other important activities of human resources management planning, selection, reward and motivation, continuously leading to the formation of employees. It is worth mentioning the fact that companies in general still has much work to do in connection with programs for compensation of employees, and this relying on the fact that many companies, particularly in the Balkan states where they continue to give salary different bonuses in envelopes, while reducing the transparency of payment and reward in these companies-organizations.